In today’s briefing:
- Samsung Electronics Placement – Somewhat Well Flagged but Could Have Timed It Better
- Lasertec (6920) Accelerated Block Offering – ¥60bn Likely Easily Taken Up
- Lasertec Placement – Opportunistic Selldown Will Be Easily Digested by the Market
- A Comprehensive Update on Implementation of Block Deals Pre-Disclosure in Korea
- Apple Partner Hon Hai Reports Weakest December Revenue In Years, But EV Growing; Buying Opportunity
- Micoworks scores US$24.5M to expand its marketing platforms into SEA | e27
Samsung Electronics Placement – Somewhat Well Flagged but Could Have Timed It Better
- KEB Hana Bank, on behalf of the Lee family, is looking to raise up to US$1.6bn via selling 0.5% of Samsung Electronics (005930 KS)
- The deal appears to be somewhat well flagged, however, the timing could have been much better.
- In this note, we will run the deal through our ECM framework and talk about the recent updates.
Lasertec (6920) Accelerated Block Offering – ¥60bn Likely Easily Taken Up
- Today after the close, there was word of an Accelerated Block Offering by two banks on Lasertec Corp (6920 JP), selling ¥61+bn or US$425mm of shares.
- The Nikkei 225 hit a new 34-year high today, and this caused some tech stocks and high-weights to perform very well vs their peers.
- This should cause the deal to get taken up easily. HOWEVER, it pays to know where the stock is. The register isn’t what volume tells you it might be.
Lasertec Placement – Opportunistic Selldown Will Be Easily Digested by the Market
- MUFG Bank and Mitsubishi UFJ Trust and Banking are looking to raise around US$425m from selling their respective stakes in Lasertec Corp (6920 JP).
- Given the strong momentum on the stock, combined with the wave of shareholders ending their cross-shareholdings in Japan, we would argue that the deal is somewhat expected.
- Despite the remaining overhang on the stock, the deal would be easily digested by the market as well, representing just 0.14 days of the firm’s three month ADV.
A Comprehensive Update on Implementation of Block Deals Pre-Disclosure in Korea
- The effective date, required by law to start six months post-promulgation, suggests implementation around July this year.
- Enforcement decrees and regulations, under the Financial Services Commission’s purview, must be confirmed before the effective date (within six months post-promulgation). The announcement is likely in early to mid-March.
- Expecting the amendment, there may be a pre-July surge in block deals as major shareholders expedite plans, creating assertive market activity in the first half with potential trading opportunities.
Apple Partner Hon Hai Reports Weakest December Revenue In Years, But EV Growing; Buying Opportunity
- Hon Hai released its December revenue figures on January 5th; Revenue came in lower than any other December in recent history.
- Hon Hai’s MIH EV consortium is showcasing solutions at CES 2024 this week in Las Vegas. In Taiwan, the Luxgen expects 9,000 customer deliveries for its ‘n7’ EV by June.
- Hon Hai is trading at less than 5x forward 2025E PE; and on a trailing basis one of the lower EV/EBITDA’s in history. Latest share drop is a buying opportunity.
Micoworks scores US$24.5M to expand its marketing platforms into SEA | e27
- Micoworks, a marketing company that optimises communication between companies and their customers, has raised JPY 3.5 billion (~US$24.5 million) in a Series B funding round.
- Vertex Growth, a growth-stage VC fund anchored by Vertex Holdings, a subsidiary of Temasek, led the round.
- Participating investors include JAFCO Group, Mitsubishi UFJ Capital, SMBC Venture Capital, and Mizuho Capital.
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